> For the complete documentation index, see [llms.txt](https://docs.qiro.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.qiro.fi/products/qiro-marketplace/securitisation.md). # Securitisation **Securitisation Pools** are designed for pooling together a group of underlying loans or receivables and distributing the incoming cashflows from those assets to investors based on a tiered structure. Unlike Term Loan Pools, these do not follow a fixed repayment schedule. Instead, repayments to investors depend entirely on **actual collections** from the asset pool — including principal repayments, interest payments, early repayments, or recoveries from defaults. \ **Key Features:** * **Cashflow-Driven Repayments**\ Instead of following a fixed repayment schedule, repayments in these pools are made as cash is received — whether from interest, principal repayments, prepayments, or recoveries. This makes them suitable for portfolios where cashflows are variable or seasonal. * **Tranche-Based Investment Structure**\ These pools are always **multi-tranched**, starting with: * **Senior Tranche**: Receives repayments first and is more protected from losses. * **Junior Tranche**: Paid after senior obligations are met and absorbs losses first, offering potentially higher returns. * **Flexible Waterfall Distribution**\ The distribution of cashflows between tranches follows a predefined **waterfall mechanism**, which governs who gets paid, when, and how much: * **Sequential Waterfall**: All interest and principal payments go to the Senior tranche until it’s fully paid; only then does the Junior tranche start receiving distributions. * **Pro-Rata Waterfall**: Interest is shared proportionally between tranches, while principal is still prioritized to Senior first. This structure offers investors the ability to choose between **lower-risk, stable** returns (Senior) or **higher-risk, higher-reward** positions (Junior), depending on their risk appetite. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.qiro.fi/products/qiro-marketplace/securitisation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.